World stocks declined on Wednesday, Sept. 2, after fresh U.S. airstrikes on Iranian military targets near the Strait of Hormuz heightened energy-supply and inflation concerns, lifting Brent crude futures 0.1% to $94.87 a barrel and extending a global sovereign bond selloff into its sixth session. Tehran said it had targeted U.S. assets across the region in the most significant exchange of fire in weeks. The U.S. 10-year Treasury yield reached 4.8122%, its highest level in almost three years, while Japan’s 10-year yield remained above 3% for a second consecutive session after reaching a three-decade high earlier in the week. JPMorgan Private Bank strategist Grace Peters warned that yields of 5% to 5.25% could materially pressure equity valuations, although some JPMorgan strategists remained cautiously optimistic on stocks because of earnings momentum. MSCI’s global stock gauge fell 0.2%, South Korea’s KOSPI dropped almost 4%, the Nikkei 225 fell 2.9% and the pan-European STOXX 600 declined 0.3%. The U.S. dollar index rose 0.05% to 99.734, near its highest level since Aug. 17. Fed funds futures priced a 68% chance of a 25-basis-point Federal Reserve rate increase at the Sept. 16 meeting, up from 37% a week earlier. Gold fell 0.1% to $4,322.24 an ounce, Bitcoin edged 0.6% lower to $76,951.01 and ether declined 1% to $2,394.57.